Business Formation Report | January 2026

Key Takeaways

• Overall, January formations exceeded the same time last year
• 45 out of 51 jurisdictions show increased formation numbers from last month

Business formation data is drawn from state-level filings, cross-referenced against U.S. Census Bureau data. Learn more.

Early 2026 Numbers Indicate Continued Momentum

January formation numbers already point toward another strong year. So far, new business counts are doing two things at once: staying level with January 2025 while also outperforming last month by a respectable 17%.

This early kick start to the year is widespread, too. Several states posted sharp month-over-month gains, including North Carolina, West Virginia, and Kentucky, climbing 55%, 53%, and 48%, respectively. This isn’t simply a bounce back from regions that remained cautious in the final quarter of 2025, either, as many states also soared over January of last year as well. Oregon is up 43% from January of 2025, and Wyoming grew 32% over the same period.

As formations surge, this year seems to be continuing the trends established in 2025. When job markets tighten, business formations tend to surge—and that’s what we’re seeing now.

Most States Grew Over Last Month, and Last Year

Reinforcing a pattern of steady national momentum, January’s numbers remain in lock step with those of 2025, which marked the highest January total since 2018. Getting more specific, all but 6 jurisdictions recorded increases over last month, and most also posted gains compared with last January.

At the same time, 16 jurisdictions recorded year-over-year declines, including several states that typically contribute meaningfully to national totals. This introduces a subtle note of caution beneath an otherwise stable national picture. The combination of broad-based growth alongside key regional slowdowns is an important watch point as Q1 2026 continues to unfold.

Business Owner Confidence Refuses to Waver

As with every installment of the Business Formation Report, we spoke to new business owners to better understand of how they’re feeling about the year ahead. More than two-thirds of the entrepreneurs who responded told us that they’re still very optimistic about their business success over the next 12 months.

That confidence is not emerging in a vacuum. With formation numbers refusing to slow down, it’s clear that we’re still operating in a period of sustained small business strength; one that will continue to support broader economic stability and growth.